Ralph Lauren beats Q2 sales and profit estimates, raises outlook
RL•Ralph Lauren’s second-quarter revenue rose 9% to $2.20 billion, while adjusted EPS was $4.64; both beat analyst estimates. The company raised its full-year constant-currency revenue growth outlook to 6%-7% and expects operating margin to expand 80-100 basis points.
1. Quarterly results
Ralph Lauren reported second-quarter revenue of $2.20 billion, up 9% and above the $2.12 billion analyst consensus. Adjusted EPS was $4.64, beating the $4.26 estimate; reported EPS was $4.87.
2. Outlook raised
The company raised its full-year constant-currency revenue growth outlook to 6%-7%, from 5%-6%, and expects full-year operating margin to expand 80-100 basis points in constant currency. It expects third-quarter constant-currency revenue growth of about 3%-4%.
3. Asia and sales growth
Ralph Lauren said results were led by 28% revenue growth in Asia, with China revenue up more than 35% due to store sales and new distribution. Global comparable store sales rose 10%, with balanced growth across digital and physical channels and 9% AUR growth.
